[June 11, 2014]
(Reuters) - Bank of America
Corp and the U.S. Department of Justice (DOJ) have
reached an impasse in negotiating a multibillion-dollar
settlement related to the bank's mortgage investments,
the New York Times reported citing people briefed on the
matter.

The talks stalled on Monday after the bank's
latest offer of more than $12 billion to resolve state and
federal investigations into its sale of mortgage investments
fell far short of prosecutors' demands, the newspaper said.

On Tuesday, as Bank of America sought to continue negotiations,
the Justice Department moved to put the finishing touches on a
civil complaint against the bank, the report said, citing the
people.

The lawsuit, which is not imminent, is expected to accuse the
bank of selling mortgage investments that led to billions of
dollars in losses.

Reuters reported in April that Bank of America said in an annual
regulatory filing that a U.S. Attorney's office advised the bank
it would recommend the Justice Department bring a civil case
against its affiliates over mortgage bonds.

The second-largest U.S. bank faces multiple government probes
over the underwriting, sale and securitization of residential
mortgage bonds before the financial crisis.

Bank of America spokesman Lawrence Grayson declined to comment
on the report. Representatives for the DoJ did not immediately
respond to emails seeking comment outside regular U.S. business
hours.

(Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar
Warrier and Joyjeet Das)